Nissan may make small cars with AvtoVAZ from ’12

Nissan Motor Co., Japan’s third- largest automaker, may make small sedans in Russia from 2012 in partnership with OAO AvtoVAZ, Kyodo News said.

Yokohama-based Nissan and AvtoVAZ may produce 70,000 vehicles a year at a factory in central Russia, Kyodo said, citing an official at AvtoVAZ, Russia’s biggest carmaker.

AvtoVAZ said yesterday it plans to invest about 240 million euros ($358 million) with Nissan and Renault SA to revamp production and make five new models. AvtoVAZ will introduce two Renault models, one Nissan model and two under its own Lada brand starting in 2012, according to Igor Burenkov, a spokesman for the Russian carmaker.

Renault, whose Chief Executive Officer Carlos Ghosn also heads Nissan, paid $1 billion for 25 percent of AvtoVAZ in 2007 and is discussing its role in a recovery plan with other shareholders, including the Russian government.